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Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094

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BuyFindarrow_forward

Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094
Textbook Problem

Direct labor cost budget

Magnolia Candle Inc. budgeted production of 74,200 candles in 20Y4. Each candle requires molding. Assume that 12 minutes are required to mold each candle. If molding labor costs $14.00 per hour, determine the direct labor cost budget for 20Y4.

To determine

Budgeting is a process to prepare the financial statement by the manager to estimate the organization’s future actions. It is also helpful to satisfy the everyday activities.

To Calculate: The direct labor cost budget for 20Y4.

Explanation

Calculate the direct labor cost budget for 20Y4.

M Incorporation

Direct Labor Cost Budget

For the year ending December 31, 20Y4

Particulars Units
Hours required for assembly:
Candles (in minutes) (A) 890,400(1)
Convert minutes to hours (B) 60 minutes
Molding Hours [(C) = (A) / (B)] 14,840
Hourly rate (D) $14
T...

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